{"id":856,"date":"2026-02-11T09:00:46","date_gmt":"2026-02-11T08:00:46","guid":{"rendered":"https:\/\/balmontconseil.com\/?page_id=856"},"modified":"2026-08-26T18:45:17","modified_gmt":"2026-08-26T16:45:17","slug":"pacte-dutreil-transmission-entreprise","status":"publish","type":"page","link":"https:\/\/balmontconseil.com\/en\/ressources\/etudes-de-cas-patrimoniales\/pacte-dutreil-transmission-entreprise\/","title":{"rendered":"Complete Guide to the Dutreil Pact: Optimizing the Transfer of a Family Business"},"content":{"rendered":"<p class=\"wp-block-paragraph\">The long-term viability of businesses in France often depends on the ability of their leaders to organize a smooth succession. However, the <strong>inheritance tax<\/strong> can represent a major obstacle, sometimes threatening the very survival of the entity due to the levying of high transfer taxes. The Dutreil Pact then emerges as the key mechanism for benefiting from\u2019<strong>tax breaks<\/strong> substantial.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>1. The Challenges of Family Business Transfer<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There <strong>family business transfer<\/strong> is a pivotal moment. It involves not only human and operational aspects, but above all... <strong>tax issues<\/strong> First-rate. Without anticipation, the tax cost of a gift or inheritance can force heirs to sell the business or take on heavy debt to pay the taxes to the Public Treasury.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Dutreil Pact, codified in Article 787 B of the General Tax Code, was designed to avoid these scenarios. It allows, subject to compliance with <strong>specific conditions<\/strong>, to benefit from an exemption from transfer taxes up to <strong>75 %<\/strong> of the value of the securities transferred.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>2. The Exemption Mechanism and the Pacte Law<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The scheme is based on commitments to retain the securities. <strong>conditions for exemption<\/strong> are structured in two distinct phases: collective commitment and individual commitment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Effects of the Pacte Law<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Since 2019, the <strong>effects of the Pacte law<\/strong> have significantly streamlined and modernized the system. Among the major changes are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reducing the ownership thresholds for collective commitments.<\/li>\n\n\n\n<li>Facilitating the contribution of securities to a holding company.<\/li>\n\n\n\n<li>Securing the system in case of partial non-compliance with commitments.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These developments aim to promote\u2019<strong>continued operation of the business<\/strong> by simplifying administrative constraints for entrepreneurs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>3. Analysis of Specific Conditions<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For the tax benefit to be definitive, several criteria must be met, ranging from the company&#039;s activity to the length of time the securities have been held.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Collective Commitment to Conservation (CCC)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The donor (or the deceased) must have signed a commitment to preserve the gift for a minimum period of <strong>two years<\/strong>. This commitment must cover at least <strong>17 %<\/strong> financial rights and <strong>34 %<\/strong> voting rights for unlisted companies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Individual Conservation Commitment (EIC)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">At the time of transfer (by gift or following the <strong>death of the donor<\/strong>), each heir or donee must individually undertake to retain the securities received for a period of <strong>four years<\/strong>. This <strong>transmission time<\/strong> and conservation is crucial: any premature disposal calls into question the advantages obtained.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Continuous Operations and the Management Function<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">One of the essential conditions is that one of the signatories of the pact (or one of the heirs) exercises an effective management function in the company for the entire duration of the collective commitment and for the three years following the transfer.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Condition<\/strong><\/td><td><strong>Duration<\/strong><\/td><td><strong>Threshold (Unlisted)<\/strong><\/td><\/tr><tr><td><strong>Collective Commitment<\/strong><\/td><td>minimum 2 years<\/td><td>17% (financial rights) \/ 34% (voting)<\/td><\/tr><tr><td><strong>Individual Commitment<\/strong><\/td><td>minimum 4 years<\/td><td>100% of the securities received<\/td><\/tr><tr><td><strong>Company management<\/strong><\/td><td>During the pact + 3 years after<\/td><td>N \/ A<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>4. FAQ: Everything you need to know about the <a href=\"https:\/\/balmontconseil.com\/en\/transmission-protection\/pacte-dutreil\/\">Dutreil Pact<\/a><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here are detailed answers to the most frequently asked questions to secure your transfer strategy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Q1: What is the Dutreil Pact?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The Dutreil Pact is a French tax incentive scheme designed to facilitate the transfer of industrial, commercial, craft, agricultural, or professional businesses. Its principle is simple: in exchange for a commitment by the partners and their heirs to retain their shares, the State grants a reduction in the taxable base. It is the benchmark tool for the <strong>inheritance tax<\/strong> professional.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Q2: What are its advantages for the transfer of a family business?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The main advantage lies in the reduction of <strong>75 %<\/strong> based on the market value of the securities. In concrete terms, if a company is worth \u20ac1,000,000, inheritance tax will only be calculated on a basis of \u20ac250,000.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Moreover :<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It can be combined with other reductions (such as the reduction of duties for gifts in full ownership before age 70).<\/li>\n\n\n\n<li>It helps to maintain stable share capital by avoiding the entry of third-party investors to pay taxes.<\/li>\n\n\n\n<li>It secures governance in the long term.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Q3: Which companies can benefit from this?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The scheme is reserved for companies engaged in an activity <strong>operational<\/strong>. This includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Commercial, industrial and craft activities.<\/li>\n\n\n\n<li>Liberal and agricultural activities.<\/li>\n\n\n\n<li>Group holding companies (which actively participate in the conduct of group policy and the control of their subsidiaries).<\/li>\n\n\n\n<li><em>Important note:<\/em> The companies of <a href=\"https:\/\/balmontconseil.com\/en\/gestion-de-patrimoine\/\">wealth management<\/a> Furniture or real estate (e.g., bare rental SCI) are excluded from the scheme.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Q4: What legal and tax conditions must be met?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In addition to the retention periods (2 years collectively + 4 years individually), the following must be respected:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>The detention threshold<\/strong> The pact must represent a significant percentage of the capital.<\/li>\n\n\n\n<li><strong>The management function<\/strong> : One of the heirs or donees (or a signing partner) must manage the company (Manager of SARL, President of SAS, etc.).<\/li>\n\n\n\n<li><strong>The written document<\/strong> The agreement must be recorded by an authentic (notarized) document or by registered private agreement.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Q5: What procedure should be followed to implement a Dutreil Pact?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The setup generally follows this order:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Company audit<\/strong> : Verify that the activity is eligible.<\/li>\n\n\n\n<li><strong>Drafting the pact<\/strong> : Define the signatories and the titles concerned.<\/li>\n\n\n\n<li><strong>Registration<\/strong> : Register the deed with the tax office to establish a legally binding date.<\/li>\n\n\n\n<li><strong>Transmission<\/strong> : To make the donation or to acknowledge the inheritance.<\/li>\n\n\n\n<li><strong>Reporting obligations<\/strong> : Each year (or upon request), the company must provide a certificate attesting that the conservation commitments are being met.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Q6: What are the exemption rates or amounts?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The exemption rate is fixed: <strong>75 %<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Example calculation:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This involves a transfer of securities worth $4,000,000$ \u20ac.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Without Dutreil Pact: Taxable base = $4\\,000\\,000$ \u20ac.<\/li>\n\n\n\n<li>With Dutreil Pact: Taxable base = $4\\,000\\,000 \\times 25\\% = 1\\,000\\,000$ \u20ac.<br>Tax savings often amount to hundreds of thousands, or even millions of euros, depending on the marginal tax bracket of the heirs.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Q7: What are some common mistakes or pitfalls to avoid?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The risks are real and can lead to a retroactive forfeiture of the tax advantage:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Termination of management function<\/strong> : If the designated manager leaves their position before the end of the 3-year post-transfer period without being replaced by another signatory.<\/li>\n\n\n\n<li><strong>Transfer of securities during the commitment period<\/strong> Even a minority sale can break the agreement for the seller.<\/li>\n\n\n\n<li><strong>Passive holding<\/strong> : Transforming the company into a simple management company with no real activity.<\/li>\n\n\n\n<li><strong>Forgetting to declare<\/strong> : Failure to send the annual certificate to the tax authorities may trigger an audit.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Q8: What concrete examples illustrate the use of the Dutreil Pact?<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Case A (Early transmission)<\/strong> A 62-year-old business owner signs a shareholders&#039; agreement for his SAS (simplified joint-stock company). Two years later, he gifts the bare ownership to his two children. They benefit from the 75% tax allowance and an additional 50% reduction on the taxes due because the donor is under 70 years old.<\/li>\n\n\n\n<li><strong>Case B (Sudden death)<\/strong> In the absence of a pact signed during his lifetime, the heirs can conclude a &quot;Dutreil Post-Mortem Pact&quot; within 6 months of the <strong>death of the donor<\/strong>, under certain conditions, to save the company from tax bankruptcy.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>5. Advanced Strategies and Points of Vigilance<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The &quot;Deemed Acquired&quot; Commitment\u00ab<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Since the <strong>effects of the Pacte law<\/strong>, It is easier to consider a collective commitment as &quot;deemed fulfilled.&quot; If the manager alone (or with their spouse) has held the required capital and voting rights thresholds for more than two years, and has held a management position for more than two years, the collective commitment is considered fulfilled. This allows for an immediate donation without waiting for the two-year period of the formal ECC (Enterprise Capital Contract).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Takeover Holding Company<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">It is common for heirs to wish to contribute their shares to a holding company in order to buy back the shares of other family members. The Dutreil regime allows this contribution under very strict conditions (the holding company must be controlled by the heirs and must not sell the shares received), thus making it possible to reconcile <strong>tax issues<\/strong> and capital restructuring.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Business Continuity Plan: The Heart of the Matter<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The tax authorities are particularly vigilant regarding the actual nature of the business activity. A company that becomes purely asset-based (selling off its production assets to retain only cash or investment properties) would immediately lose the benefit of... <strong>tax breaks<\/strong>. L&#039;\u2019<strong>continued operation of the business<\/strong> must be the guiding principle of the transmission strategy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Expert&#039;s note:<\/strong> \u00ab&quot;The Dutreil Pact is not just a tax loophole; it is an essential shield for the economic sovereignty of French SMEs.&quot;\u00bb<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Anticipating the <strong>family business transfer<\/strong> via a Dutreil Pact is a complex process that requires expert guidance (notaries, tax lawyers). Strict adherence to the <strong>transmission time<\/strong> and <strong>specific conditions<\/strong> is the sole guarantor of the security of your assets. By controlling the <strong>inheritance tax<\/strong>, you ensure the next generation has the means to achieve its ambitions without the burden of a stifling tax debt.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Would you like me to simulate a precise calculation of inheritance tax with and without the Dutreil Pact for a specific amount of capital?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>","protected":false},"excerpt":{"rendered":"<p>La p\u00e9rennit\u00e9 des entreprises en France repose souvent sur la capacit\u00e9 des dirigeants \u00e0 organiser leur succession de mani\u00e8re fluide. Cependant, la fiscalit\u00e9 des transmissions peut repr\u00e9senter un obstacle majeur, mena\u00e7ant parfois<span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>\n","protected":false},"author":2,"featured_media":0,"parent":370,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-856","page","type-page","status-publish","hentry"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/balmontconseil.com\/en\/wp-json\/wp\/v2\/pages\/856","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/balmontconseil.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/balmontconseil.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/balmontconseil.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/balmontconseil.com\/en\/wp-json\/wp\/v2\/comments?post=856"}],"version-history":[{"count":2,"href":"https:\/\/balmontconseil.com\/en\/wp-json\/wp\/v2\/pages\/856\/revisions"}],"predecessor-version":[{"id":1234,"href":"https:\/\/balmontconseil.com\/en\/wp-json\/wp\/v2\/pages\/856\/revisions\/1234"}],"up":[{"embeddable":true,"href":"https:\/\/balmontconseil.com\/en\/wp-json\/wp\/v2\/pages\/370"}],"wp:attachment":[{"href":"https:\/\/balmontconseil.com\/en\/wp-json\/wp\/v2\/media?parent=856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}